What would you pay?

I know Dave says to pay off the smallest debts first after establishing an EF, but I'm not sure if collections vs. other accounts that are on my credit report bare more weight in paying off first. I don't actually even know if there's a difference between the two...

I don't have anyone in my life that knows anything about bills/credit/etc...I am the first person in my family to have a job. That being said, I racked up a shitload of debt while I was pursuing my bachelor's degree as a single mother and caring for my own mother. I am now attempting to clean up my mess.

I am anticipating that any potential boost to my credit would be an extremely modest, as I am sure there is not much that I can do to try to better it at this point [Score is 558/578].

I have a lot of both collections and accounts that I owe on. I don't even know the difference between the two, but would anyone have any recommendations on what I should focus on paying off?

I also am hoping to save some money up before I move off to graduate school [anticipated to begin in August 2019]. I have two children, 4 years old and 9 months old. So I am hoping to save up some money to be able to have a little bit of wiggle room since I will be in school for the next 6-8 years (tuition would be paid and stipend...the money I am saving would go to living expenses)

Would you even focus on paying off these debts or should saving any money that I can be a priority?

(Take the amount you expect to spend in a year, divide by 12 and set aside this amount each month in savings.)clothing & shoeshaircutspet caregifts, partiesschool expenseshousehold/gardenChristmas/birthdayshome maintenance (1% of house value per year)car maintenance/tags ($75/car recommended)medical (rx, copays, contacts, dental)kids classes/activitiesadult classes/activitiestuitionproperty taxes (if not included in mortgage)adult classestravelAAA, etc.new car fund

How much money do you have set aside right now for an emergency fund and in sinking funds? How much do you have saved to pay off debts/collections? Is there any way to refinance the car? Twenty percent interest on a car is vomit-worthy. What is your take home pay now? What is your plan for living expenses when in grad school if you DONT save it up now? Is there any way to either delay grad school or work during grad school so you don’t go into more debt/preferably pay down debt?

(Take the amount you expect to spend in a year, divide by 12 and set aside this amount each month in savings.)clothing & shoeshaircutspet caregifts, partiesschool expenseshousehold/gardenChristmas/birthdayshome maintenance (1% of house value per year)car maintenance/tags ($75/car recommended)medical (rx, copays, contacts, dental)kids classes/activitiesadult classes/activitiestuitionproperty taxes (if not included in mortgage)adult classestravelAAA, etc.new car fund

I often wonder how this works too. DH's mom never had a job and his dad never paid child support. She still doesn't have a job and he has a sister who's 15 that lives with her. She's always bounced from guy to guy, but even so there's periods of time she's single and still manages to have an apartment - like right now for instance - with absolutely zero income (no child support for SIL).

(Take the amount you expect to spend in a year, divide by 12 and set aside this amount each month in savings.)clothing & shoeshaircutspet caregifts, partiesschool expenseshousehold/gardenChristmas/birthdayshome maintenance (1% of house value per year)car maintenance/tags ($75/car recommended)medical (rx, copays, contacts, dental)kids classes/activitiesadult classes/activitiestuitionproperty taxes (if not included in mortgage)adult classestravelAAA, etc.new car fund

I have a friend who has rent assistance/government aid, wellfare, and food banks. Clothes come from different church clothing closets. Only works enough hours to be able to file a tax return and get EIC.

I often wonder how this works too. DH's mom never had a job and his dad n...

Posted
10/29/2018

I often wonder how this works too. DH's mom never had a job and his dad never paid child support. She still doesn't have a job and he has a sister who's 15 that lives with her. She's always bounced from guy to guy, but even so there's periods of time she's single and still manages to have an apartment - like right now for instance - with absolutely zero income (no child support for SIL).

My SIL (sister-in-law) and MIL (mother-in-law) are the same way. My SIL (sister-in-law) is 30 has been married 4 times and has three kids. She has never had a job for longer than a week, and that is only for once or twice a year, and lives with MIl, who has also never had a job. She gets a new bf or husband every few months and he pays for everything.

My MIL (mother-in-law) was the same when when my DH (dear husband) was a kid. She was also married 3 different times, and had many different live in bf’s who paid the bills.

And then of course wellfare picks up the tab for a lot of it. Medical, food stamps, WIC, energy assistance, cash assistance, and her $12,000 a year tax refund.

I have a friend who has rent assistance/government aid, wellfare, and food ba...

Posted
10/30/2018

I have a friend who has rent assistance/government aid, wellfare, and food banks. Clothes come from different church clothing closets. Only works enough hours to be able to file a tax return and get EIC.

Personally - I would not keep people like this as friends.

And then they wonder why so many are up in arms about government assistance.

(Take the amount you expect to spend in a year, divide by 12 and set aside this amount each month in savings.)clothing & shoeshaircutspet caregifts, partiesschool expenseshousehold/gardenChristmas/birthdayshome maintenance (1% of house value per year)car maintenance/tags ($75/car recommended)medical (rx, copays, contacts, dental)kids classes/activitiesadult classes/activitiestuitionproperty taxes (if not included in mortgage)adult classestravelAAA, etc.new car fund

I don't want to come off as bashing GA, but there are certainly career welfare families out there. I unfortunately know a few personally, and I have to remind myself a lot that they're not the norm because it is rather stomach churning.

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